STATE BANK OF INDIA vs MS DAFENG AGRO D.MUTHUKRISHNAN SO DHASARATHAN on 2 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 05.02.2022 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 4, for recovery of a total sum of Rs.3,27,72,414.40p (Rupees Three Crores Twenty Seven Lakhs Seventy Two Thousand Four Hundred and Fourteen and Forty Paise only) as follows: i. A sum of Rs.1,44,70,339.47p due in respect of Cash Credit Loan (A/c No.36449431135) repayable together with further interest @8.40% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs.23,39,999.05p due in respect of FITL Loan (A/c No.39605215832) repayable together with further interest @14.75% p.a. with monthly rests from the date of Application till the date of realization in full; iii. A sum of Rs.1,59,62,075.88p due in respect of WCTL Loan (A/c No.39612861300) repayable together with further interest @14.75% p.a. with monthly rests from the date of Application till the date of realization in full; for sale of immovable properties morefully detailed in the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.104 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 104 of 2022 stood transferred to this Tribunal and renumbered as TA No.1194 of 2023. Brief Facts of the case:

3. The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

4. It is the case of the applicant bank that the defendants have approached the applicant bank in the year 2016 to seeking financial assistance to run the 1st defendant company business of agricultural machinery manufacturing and trading. The 3rd & 4th defendants offered various properties as security for loan to be availed by the 1st defendant company.

5. It is submitted that the applicant bank after applying their mind and analyzing various aspects as per the banking norms and upon getting clearance on the title of properties to be mortgaged in the form of legal opinion had decided to sanction the loan to the defendants.

6. The applicant submits that the said facilities are renewed from time to time and the last renewed done by the applicant bank vide Letter of Arrangement dated 25.08.2020 for Rs.295.39 lakhs in the form of CC-140 lakhs, WCTL-1-150 lakhs and FITL- 5.39 lakhs and while renewing defendants executed fresh set of loan documents.

7. It is submitted by the applicant bank that as per the RBI guidelines the bank has sanctioned FITL amount vide Letter of Arrangement dated 01.09.2020 for amount of Rs.22,09,940/-

8. In order to secure the loan, the defendants execute the following documents for the credit facilities availed by them in favour of applicant bank:

a. Letter of Arrangement dated 18.01.2017 duly signed by all the defendants;

b. Letter of Arrangement dated 25.08.2020 duly signed by all the defendants;

c. Letter of Arrangement dated 01.09.2020 duly signed by all the defendants;

d. Agreement of Loan cum Hypothecation dated 25.08.2020 executed by the 1st defendant in favour of applicant bank;

e. Guarantee Agreement dated 25.08.2020 executed by 2nd to 4th defendant in favour of applicant bank;

9. The applicant submits that the 3rd & 4th defendants deposited the following documents with the applicant bank, in order to secure the loan availed from the bank by the defendants and with an intention to create security interest under Section 58(f) of T.P.Act in favour of the applicant bank:

a. Will Deed dated 20.12.1994 registered as Doc.78 of 1994 with SRO Ponneri executed by Mr. Kannaiya Naidu and in favour of Mr. M.M. Satheesh and 6 others who were inclusive of Mr. Dhasarathan & Mr. Lakshmipathy (For item no.1 and item no.2 schedule of property)

b. Settlement Deed dated 14.12.2011 registered as Doc. No. 15794 of 2011 with SRO Ponneri executed by Mr. U.K. Murali in favour of Mr. Dhasarathan & Mr. Lakshmipathy (for item no. 3 schedule of property)

c. Exchange Deed dated 13.12.2011 registered as Doc No. 15691 of 2011 with SRO Ponneri executed by Mr. Venu Naidu and Mr.Dhasarathan & Mr.Lakshmipathy (for item no. 4 schedule of property)

d. Settlement Deed dated 18.01.2012 registered as Doc. No. 326 of 2012 with SRO Ponneri executed by Mr. Mohanram infavour of Mr.Dhasarathan & Mr.Lakshmipathy (for item no. 5 schedule of property)

10. The applicant submits that the 3rd and 4th defendants also confirmed the said mortgage of the schedule mentioned properties to and in favour of applicant bank by registering the same vide

a. Memorandum of deposit of title deed dated 27.01.2017 executed by Mr.Dhasarathan & Mr.Lakshmipathy registered as Doc.No. 157 of 2017 with SRO Ponneri infavour of the applicant bank.

b. Memorandum confirming the extension of the existing equitable mortgage deed dated 16.03.2017 executed by Mr.Dhasarathan & Mr.Lakshmipathy registered as Doc.No. 873 of 2017 with SRO Ponneri infavour of the applicant bank.

c. Memorandum confirming the extension of the existing equitable mortgage deed dated 19.06.2017 executed by Mr.Dhasarathan & Mr.Lakshmipathy registered as Doc. No. 2444 of 2017 with SRO Ponneri infavour of the applicant bank. to protect the loan availed with the bank by the defendants and with an intention to create security interest under Section 58(f) of T.P. Act in favour of the applicant bank.

11. It is submitted that the defendants though availed the loan, did not keep up their promise regarding repayment of loan and not at all properly maintained the loan account. Since the defendants failed and neglected to clear the loan, the loan was classified as Non-Performing Asset (NPA) on 28.05.2021. The loan account became sticky and hence the applicant bank recalled the entire loan amount by issuance by Demand Notice on 18.06.2021. The defendants have not paid the amounts due to the bank and hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

12. After the filing of the OA, summons were sent to the Defendants 1 to 4 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1 to D-4. No representation for Defendants. When OA was taken up on 04.10.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 4 were placed ex-parte on 04.10.2023. Heard the submissions of Applicant Bank and perused the records.

13. To prove the case of the Applicant Bank, Sh. Jithin Anto, Deputy Manager of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-8.

14. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-8 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

15. The defendants were set ex-parte on 04.10.2023, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

16. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.3,37,60,000/- by way of sale of Schedule immovable property Item No.1 to 5 under SARFAESI Act on 29.11.2022. The applicant bank further submitted that the secured assets have been sold and the value is not sufficient for the remaining liabilities of Rs.62,81,817/- with future interest and costs.

17. With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

: O R D E R :

18. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 4, a total sum of Rs.3,27,72,414.40p (Rupees Three Crores Twenty Seven Lakhs Seventy Two Thousand Four Hundred and Fourteen and Forty Paise only) as follows: i. A sum of Rs.1,44,70,339.47p due in respect of Cash Credit Loan (A/c No.36449431135) repayable together with further interest @8.40% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs.23,39,999.05p due in respect of FITL Loan (A/c No.39605215832) repayable together with

further interest @14.75% p.a. with monthly rests from the date of Application till the date of realization in full; iii. A sum of Rs.1,59,62,075.88p due in respect of WCTL Loan (A/c No.39612861300) repayable together with further interest @14.75% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

(b) The sum of Rs. 3,37,60,000/- realized by way of sale of schedule immovable properties (Item Nos 1 to 5) is directed to be given credit to the borrower’s loan account as on date of realization.

(c) If the sale proceeds of the immovable proeprties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 2nd to 4th Defendants (both movable and immovable) to recover the balance dues as required under law for which the 2nd to 4th Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 2 to 4.

(d) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

19. A copy of this order be communicated to the parties concerned.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 02nd day of September, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. Jithin Anto, Deputy Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 18.01.2017 Letter of arrangement duly signed by all the defendants A-1

2. 25.08.2020 Letter of arrangement duly signed by all the defendants A-2

3. 01.09.2020 Letter of arrangement duly signed by all the defendants A-3

4. 25.08.2020 Agreement of loan cum hypothecation executed by 1st defendant infavour of the applicant bank A-4

5. 25.08.2020 Guarantee agreement executed by 2nd to 4thdefendants infavour of applicant bank. A-5

6. - Statement of accounts for A/c No. 36449431135 from 13.1.2017 to 05.02.2022 A-6

7. - Statement of accounts for A/c No.39605215832 from 27.08.2020 to A-7

05.02.2022

8. - Statement of accounts for A/c No.39612861300 from 20.08.2020 to 05.02.2022 A-8

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE-: The mortgaged properties have been sold under SARFAESI Act

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI